Stop Pulling the Wagon

I grew up in an era where I used to hear folks say that they lived for the day they would make their last mortgage payment, burn their mortgage and own their home “free and clear”.  Not quite.

My great grandfather was a Texas Ranger and his brother, John, was a (the first?) Tax Collector in Bandera County, Texas.  This I have documentation on and so, I can trace Property Taxes at least back to the circa 1880’s and feel sure they precede that by several decades.  Perhaps in early “Frontier” days on territorial lands you could “Homestead” a piece of land with no “Revenuer” knocking on your door and demanding you pay a fee to live on your own land.  Not today.  In today’s world you never really “own” your land and home, more like, rent it from the “Government”.  Try not paying your property taxes for a while and see what happens to “your” home.

Governments are “Taxaholics” and continue to find new ways to tax you, sometimes in not so obvious, subtle ways that go on “Till the Twelfth of Never”.

I am now a “Senior Citizen” that has worked his whole life.  I can remember some 40 to 50 years ago working as a carpenter and contractor building houses for folks in the Sacramento and Sierra Foothills area.  In those days if someone wanted a house built they would bring their blueprints to either one of the contactors I worked with or to me and we would go to the County Offices and secure a “Building Permit”.  My memory is not perfect but as I remember the total permit cost for a typical house would run in the $200 to $400 range.  Since then, Cities and Counties have seized the opportunity to raise money by not only increasing the cost of  building permits but the “secret” source of revenue with added on fees for all sorts of things to provide them an increased property tax revenue.  More in a moment.

It is tempting and would be easy at this point to launch into one of my tirades on all of the taxes, overt and covert, that we all pay on a day to day basis ad nauseum, but for the sake of this little essay, I want to focus attention on just this one area of onerous taxation that is somewhat subtle and NEVER goes away.

What used to be a $200-$400 building permit fee for most cities and counties in California has turned into a tens of thousands of dollars “Taxmageddon”  that has driven the cost of housing and living in California to the brink of meltdown and created a homeless nightmare statewide.  What used to be a $200-$400 fee has now morphed into a “Fee” generating income source for Cities, Counties and the State and a de-facto forever “surtax” on private real estate property.  As examples: a good friend of mine tells me that to get a building permit for a home in Roseville, California with fees now costs some $70,000 for the permit.  Another friend tells me that a building permit with fees in El Dorado County, California can cost as much as $100,000 just for them to permit you to build a home on “your” land.

An example of just one such fee:  For new home construction in El Dorado Hills they imposed a “Traffic Impact Fee” (effective thru June 2023 which may have since been raised).  On a new home of 1500 – 1999 square feet, the fee is $32,687.  In other words they are going to charge you $32,687 to drive on “their” roads to “your” land – and silly you,  you thought roads were paid for with your Gasoline Tax Dollars. (Their fee schedule is available on line) That is just one of a “laundry list” of fees for all kinds of things.  The point of this being that this fee cost is added to the cost of the home you are buying and will be paying mortgage rates on for some 30 years.  In addition, once you pay off your mortgage you will be paying property taxes based on the property value which is assessed on what you paid for the home which includes all the fees added at the time of construction.  So you will be paying forever a tax on all of the “Fees”.  To the Taxing Authorities this is a gift that keeps on giving.  As an added bonus,  new housing that costs more has raised the value of existing properties which as they are sold are now taxed at the inflated value in part caused by the fees on new construction.  The “Tax and Fee People” win again!

IN SIMPLE PLAIN ENGLISH – ALL THOSE FEES END UP IN THE TAX APPRAISED VALUE OF ‘YOUR’ HOME AND YOU WILL PAY PROPERTY TAX ON THOSE FEES ‘FOREVER’.

This inflation cycle goes on and on and the result is home ownership becomes more and more expensive and less and less affordable.  Hello “homelessness”.  So where does all this extra “Fee” revenue go?  Unfortunately too much of it ends up indirectly in the pockets of Bureaucrats and directly in the pockets of sycophant political supporters like “Consultants”, “Contractors”, “Advisors” etc. etc. for bloated “Public Works” contracts and the public sees:

  $44,000 (each) tents for the Homeless 

https://www.stoppullingthewagon.com/?s=44%2C000+tents+for+the+homeless

AND

$478,000 Tiny Homeless apartments from a “remodeled” old run-down hotel at $1,707 per square foot.

https://www.stoppullingthewagon.com/?s=conrad+blowhard+strikes+again

OR

California’s High Speed Rail 

Now estimated to cost another $100 Billion Dollars or more on completion

https://www.stoppullingthewagon.com/?s=another+6+Billion+Dollar+rathole

At least you can take comfort in knowing your hard earned dollars are being spent wisely!

To paraphrase the “Johnny Mathis song – the “Twelfth Of Never” – (1956) 

“Until the twelfth of never – I’ll still be taxing you”.

Bob Bandy – March 2024